I first heard about this project a couple of weeks ago http://www.raspberrypi.org/
It looks very interesting as I am hopeful the board could be used as the base for a media player as it has all the correct ports.
Not sure what software could be used for this purpose, something Linux based or maybe more of a firmware/dashboard something similar to X360, PS3 or XBMC.
And best of all the Raspberry Pi has been developed in the UK.
When the board goes on sale it will about $35 or £21-£22 depending on exchange rates.